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China Regulator Urges Banks To Monitor Developers' Debt - Official

BEIJING -(Dow Jones)- China's banking regulator has urged banks to closely monitor lending to property developers, particularly those with high debt levels, an official at the China Banking Regulatory Commission told Dow Jones Newswires on Wednesday.

The official, who declined to be named, said the regulator's remarks come after a strong rebound in property prices since the second quarter. That recovery has prompted some developers to borrow excessively for speculative purposes and to buy land at high prices, which is further driving up property prices.

CBRC Chairman Liu Mingkang mentioned the risks of lending for property development during the regulator's fourth-quarter briefing with banks, the official said.

But the CBRC's latest comments are mainly to remind banks of the risks from potential property bubbles, rather than being an order to banks to curb the amount of lending to developers, he said.

-Victoria Ruan contributed to this article, Dow Jones Newswires; (8610) 6588 5848; victoria.ruan@dowjones.com

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